Chelsea are in contention to sign Mahmoud Dahoud from Borussia Mönchengladbach in the summer but face competition from a host of leading European sides including Borussia Dortmund, Paris Saint-Germain and Juventus for the highly rated Germany midfielder.

Dahoud, 21, is out of contract at Gladbach in summer 2018 and has refused to sign an extension, with the German side understood to be prepared to sell him at the end of the season. Despite reports in Germany on Friday that he has already agreed to join Dortmund for around €10m, it is believed the midfielder’s representatives have also held talks with other clubs including Chelsea in the last few weeks as they seek to negotiate his transfer.

Antonio Conte’s side have been in the market for a box-to-box midfielder for several months and made enquiries about Atalanta’s Ivorian international Franck Kessié in January, but Dahoud would also fit the bill for the Premier League leaders. However, they face serious competition from Dortmund, with PSG and Juventus also in the frame for a player who has already won six caps for his adopted country and is expected to make his decision about where to move in the coming weeks.

Liverpool had also expressed an interest in the player, who was born in Syria but moved to Germany before his first birthday, with Jürgen Klopp having failed in an attempt to sign him last summer because Gladbach were unwilling to allow him to leave after selling Granit Xhaka to Arsenal. It now appears that interest has faded, although it remains to be seen whether Liverpool will make a last-ditch attempt to lure him to Anfield.